She understood the board had indicated it did not intend to fund rural hospitals for the work done by service co-ordinators beyond October, but there had been no official notification to the union about this.
Ms Morton said she was disappointed that the board had not advised her members directly about any possible changes.
At this stage, rural hospitals are unsure whether the service will still be provided by people working locally or through a Dunedin-based system.
Ms Morton said rural hospitals were set up to provide services in their areas.
Local people had the relevant knowledge and expertise which would be hard to provide from afar.
Clutha First manager Ray Anton confirmed he had been advised recently that the matter would be discussed at a meeting on July 24, but he did not know what was being proposed.
He considered it would be hard for the service to be organised from outside.
The needs assessment service co-ordinators worked on the wards, helping to organise services for people who were leaving hospital. It would be difficult to do this without being present.
Concerns about over-delivery of services to the elderly could be addressed by the board asking staff to apply new assessment criteria, he said.
Board management is tight-lipped about the meeting.
Regional planning and funding general manager David Chrisp said on Wednesday the meeting was about continuity of care for the elderly and it would be inappropriate to discuss the issues beforehand, because it could look as if the outcomes were pre-determined.
However, he did say the board still intended to have needs assessment co-ordination services in rural areas.
The board has been looking closely at spending on community provision of services for the elderly this year, because it is concerned it is spending about $10 million a year more than it should be, according to national averages.
It hopes to be able to reduce the spending by about $6.6 million over three years.
